Shareholder Alert: Bernstein Litowitz Berger & Grossmann LLP Announces the Filing of Securities Class Action Lawsuit Against InMode Ltd.

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Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) filed a class action lawsuit in the U.S. District Court for the Central District of California alleging violations of the federal securities laws by InMode Ltd. (“InMode” or the “Company”) and certain of the Company’s senior executives (collectively, “Defendants”).

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Retrieved on: 
Wednesday, February 14, 2024
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Tags: 
Class Action Lawsuit, Professional Services, Legal, Complaint, Court, Person, Class, Dentist, FDA, Confidentiality, Injury, District court, Food and Drug Administration, Pension fund, Action Replay, Dermatology, BLB, Medical device
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UNITED STATES, NORTH AMERICA, NEW YORK, CENTRAL DISTRICT, CALIFORNIA
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BERNSTEIN LITOWITZ BERGER & GROSSMANN, BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP, BLB&G
Summary
Key Points: 
  • Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) filed a class action lawsuit in the U.S. District Court for the Central District of California alleging violations of the federal securities laws by InMode Ltd. (“InMode” or the “Company”) and certain of the Company’s senior executives (collectively, “Defendants”).
  • The action is brought on behalf of all persons or entities that purchased or otherwise acquired InMode common stock between June 4, 2021, and October 12, 2023, inclusive (the “Class Period”).
  • BLB&G filed this action on behalf of its client, Cement Masons’ and Plasterers’ Local No.
  • The customers also stated that InMode offered to replace defective products on the condition of signing confidentiality agreements with non-disparagement clauses.


Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP (“BLB&G”) filed a class action lawsuit in the U.S. District Court for the Central District of California alleging violations of the federal securities laws by InMode Ltd. (“InMode” or the “Company”) and certain of the Company’s senior executives (collectively, “Defendants”). The action is brought on behalf of all persons or entities that purchased or otherwise acquired InMode common stock between June 4, 2021, and October 12, 2023, inclusive (the “Class Period”).

BLB&G filed this action on behalf of its client, Cement Masons’ and Plasterers’ Local No. 502 Pension Fund, and the case is captioned Cement Masons’ and Plasterers’ Local No. 502 Pension Fund v. InMode Ltd., No. 24-cv-1219 (C.D. Cal.). The complaint is based on an extensive investigation and a careful evaluation of the merits of this case. A copy of the complaint is available on BLB&G’s website by clicking here.

InMode’s Alleged Fraud

InMode is a global provider of aesthetic medical devices and technology, including devices purporting to offer body sculpting and other rejuvenation technologies. The Company’s target customers include dermatologists, dentists, obstetricians and gynecologists, and medical spas.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and omissions concerning two topics that are of critical importance to investors: (1) the price at which InMode sells its devices, which reflects the demand for those products; and (2) InMode’s compliance with U.S. Food and Drug Administration (“FDA”) regulations, including the FDA’s prohibition on off-label marketing of devices and the FDA’s requirements for the reporting of injuries. Specifically, Defendants repeatedly touted the demand for InMode’s devices and told investors that those devices were never sold at a discount. InMode also assured investors that it had “obtained [FDA] clearance for the current treatments for which we offer our products” and that “no third-party claims have been brought against us to date.” As a result of these misrepresentations, the price of InMode common stock traded at artificially inflated prices throughout the Class Period.

In reality, throughout the Class Period, InMode routinely discounted the prices of its devices and violated FDA regulations by promoting the off-label use of its devices, and by failing to properly report injuries caused by its devices.

The truth began to emerge just before the market closed on February 17, 2023, when an investigative publication revealed that InMode threatened some customers with legal action over complaints made about the Company’s devices and sales tactics. The customers also stated that InMode offered to replace defective products on the condition of signing confidentiality agreements with non-disparagement clauses. However, despite these disclosures, InMode continued to misrepresent the pricing of, and demand for, its products.

Then, on October 12, 2023, before the market opened, InMode lowered its full-year revenue guidance, which the Company blamed on higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing. Later that same day, an investigative publication announced a forthcoming report on InMode, relating to the Company’s statements to investors about pricing flexibility of products and margin consistency. After the close of trading, the publication released a story revealing that InMode significantly discounted the prices of its devices on a routine basis throughout the Class Period. As a result of these disclosures, the price of InMode common stock declined precipitously.

If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than April 15, 2024, which is the first business day on which the U.S. District Court for the Central District of California is open that is 60 days after the publication date of February 14, 2024. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott R. Foglietta of BLB&G at 212-554-1903, or via e-mail at [email protected].

About BLB&G

BLB&G is widely recognized worldwide as a leading law firm advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of the litigation process to achieve precedent-setting governance reforms. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering over $40 billion on behalf of defrauded investors. More information about the firm can be found online at www.blbglaw.com.

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